Professional Documents
Culture Documents
After Pakistan was born in 1947, Habib Bank, at the urging of Governor-General Jinnah,
moved its headquarters to Karachi, Pakistan's first capital. This gave Karachi its first
commercial bank of the newly formed Islamic Republic of Pakistan. HBL was
incorporated on 25th August 1941 and operated in the private sector until its
nationalization in 1974. HBL has been approved for privatization and the privatization
commission has selected a Financial Advisor to prepare a comprehensive plan and assist
in the sale process. The government has appointed a professional management team to
restructure the bank and to recover and clean its doubtful and classified portfolio.
Services:
Habib Bank offers the basic range of banking services to its customers, to include
Commercial, Corporate, Investment, and Retail Banking, Treasury, and Islamic Banking.
Company Description:
HBL is a Banking Company, which is engaged in Commercial & Retail Banking and
related services domestically and overseas.
Brand of HBL:
HBL says “Our brand identity is the outward expression of what we stand for as an
organization. This is summarized in our vision, mission and is supported by our values.”
Vision of HBL:
“To make our customers prosper, our staff excel and create value for
shareholders”
Values of HBL:
HBL’s values are the fundamental principles that define its culture and are
brought to life in its attitudes and behavior. It is company’s values that make
its unique and unmistakable. Company values are defined below:
• Excellence
• Integrity
• Customer focus
• Meritocracy
• Progressiveness
Excellence:
This is at the core of everything HBL does. The markets in which HBL operates are
becoming increasingly competitive, giving their customers an abundance of choice. Only
through being the very best - in terms of the service HBL offers, its products and
premises - can it hope to be successful and grow.
Integrity:
HBL is the leading bank in Pakistan and its success depends upon trust. Its customers -
and society in general - expect it to possess and steadfastly adhere to high moral
principles and professional standards.
Customer focus:
HBL understands fully the needs of its customers and adapts its products and services to
meet these. HBL always strives to put the satisfaction of its customers first.
Meritocracy:
HBL believes in giving opportunities and advantages to its employees on the basis of
their ability. HBL believes in rewarding achievement and in providing first-class career
opportunities for all.
Progressiveness:
HBL believes in the advancement of society through the adoption of enlightened working
practices, innovative new products and processes, and a spirit of enterprise.
Operational Structure:
HBL is one of the largest commercial bank of Pakistan. It accounts for a substantial share
(20%) of the total commercial banking market in Pakistan with a network of 1,705
domestic branches; 55 overseas branches in 26 countries spread over Europe, the Middle
East, Far East, Asia, Africa and the United States; 3 HBL wholly owned Subsidiaries
namely Habib Bank Financial Services (PVT) LTD. Karachi, Habib Finance International
LTD (Hong Kong) and Habib Finance Australia Ltd. – Sydney; 2 Joint Ventures namely
Habib Nigeria Bank Ltd. (40%) and Himalayan Bank Ltd. (20%) and 2 representative
offices in Iran and Egypt.
Major Local Market Presence: HBL is one of the largest commercial banks in Pakistan
representing approximately 20% of the assets and deposits of the banking sector.
A Household Name: HBL's brand name is well established. It has an extensive domestic network
of 1705 branches reaching virtually every segment of the Pakistani economy.
A Full Service Bank: HBL provides its customers a complete range of banking products
and services including retail banking, corporate and institutional banking, trade finance,
consumer finance and credit cards.
An International Bank: HBL has a presence globally through an extensive international branch
network described in the table below;
.
Country Status Opened Branches
AFRICA
Kenya Branch Operation 1956 5
Mauritius Branch Operation 1964 4
Seychelles Branch Operation 1976 1
Sweden Branch Operation 1982 1
ASIA
Bangladesh Branch Operation 1976 2
Fiji Islands Branch Operation 1991 1
Maldives Branch Operation 1976 1
Singapore Branch Operation /OBU 1971 1
Sri Lanka Branch Operation 1951 3
Karachi EPZ Branch Operation 1983 1
MIDDLE EAST
Bahrain Branch Operation /OBU 1969 3
Lebanon Branch Operation 1964 1
Oman Branch Operation 1972 11
UAE Branch Operation 1966 8
EUROPE
Belgium Branch Operation 1975 1
France Branch Operation 1980 1
Netherlands Branch Operation 1979 1
Turkey Branch Operation 1983 1
UK Branch Operation 1961 6
USA Branch Operation 1971 1
Ownership Structure
Board of Directors
• Sultan Ali Allana
Chairman
• R. Zakir Mahmood
President & CEO
• Iain Donald Cheyne
Director
• Sajid Zahid
Director
• Ahmed Jawad
Director
• Mushtaq Malik
Director
• Yasin Malik
Director
Board Committees
Audit Committee
• Mr. Iain Donald Cheyne
Chairman
• Mr. Sajid Zahid
Member
• Mr. Ahmed Jawad
Member
Risk Management Committee
• Mr. Sultan Ali Allana
Chairman
• Mr. R. Zakir Mahmood
Member
• Mr. Mushtaq Malik
Member
Human Resource Committee
• Mr. Sultan Ali Allana
Chairman
• Mr. R. Zakir Mahmood
Member
• Mr. Sajid Zahid
Member
Group Chief Financial Officer
• Mr. Ayaz Ahmed
Company Secretary
• Ms. Nausheen Ahmad
Legal Advisor
• Mahmood Yousuf Mandviwalla
Bar-at-Law
Auditors
• KPMG Taseer Hadi & Co.
• Chartered Accountants
Registered Office
4th Floor, Habib Bank Tower
Jinnah Avenue
Islamabad, Pakistan.
Phone: 051-2872203 & 051-2821183
Fax: 051-2872205
Head Office
Habib Bank Plaza
I.I. Chundrigar Road
Karachi - 75650, Pakistan.
Phone: 021-2418000 [50 lines]
Fax: 021-9217511
Registrars
THK Associates (Pvt.) Ltd.
Ground Floor State Life Bldg. No. 3
Dr. Ziauddin Ahmed Road
Karachi.
Websites
Corporate
www.hbl.com
Treasury
www.hblgtr.com.pk
Internet Banking
www.hblibank.com
Famous Controversy:
Habib bank has long been scrutinized by intelligence officials monitoring terrorist money
flows.
On July 18, 2007, Mariane Pearl, the widow of Wall Street Journal reporter Daniel Pearl,
filed a lawsuit against Habib Bank Ltd over the 2002 abduction, torture and murder of her
husband. The pending lawsuit alleges the bank and its subsidiaries knowingly conducted
financial transactions and provided account services on behalf of Al Akhtar Trust, a
Pakistani based charity trust. Al Akhtar Trust’s accounts have been used to provide
financial support to terrorists. However, HBL claims to have froze Al Akhtar Trust’s
accounts several years before Daniel Pearl’s abduction.
On October 24, 2007, Pearl's lawsuit against HBL was formally dropped. Lawyers for
Mariane Pearl noted that Habib Bank Limited and the other defendants in the case had
not answered the lawsuit filed in July (although Habib Bank Limited had denied ever
supporting terrorism) , but they otherwise did not explain their reason for dropping the
action.
The U.S. Federal Reserve Board and the New York State Banking Department criticized
Habib Bank Limited for failing to address deficiencies in its compliance with U.S. anti-
money laundering laws. After the U.S. Federal Reserve Board threatened formal charges,
though none were filed, Habib Bank Limited agreed to strengthen the banks compliance.
More specifically, the Fed ordered HBL to strengthen its transaction monitoring systems
and the filing of "suspicious activity reports" on transactions that do not fit the routine
business patterns of the bank's customer base.
Habib Bank Limited has also been said to be involved in large sums of money
transactions by the Pakistani intelligence agency the Inter Services Intelligence (ISI).
This is further supported by the recent book by L.K. Advani "My Country My Life" in
which he points out that the ISI's dealings in drugs overseas mainly involves transactions
through Habib Bank Limited and the funds are then transferred by various bank channels
to separatist groups in various states in India.
Growth
Maintaining a mix of short & long term deposits to minimize the cost of funds.
Asset Quality
Stringent Risk Management
Unified IT System
Intensive Training and Professional Recruitment
Focus
Re-organization of the Consumer and Retail Banking Businesses
IT system enhancement
Product offering enhancement
Advancement of operations in urban areas
Businesses
Retail Banking
Deposit Mobilization
• Largest branch network in Pakistan
Urban - 703 branches 80% deposits and 94% advances
Rural - 734 branches 20% deposits and 6% advances
• Largest customer deposit base: 5mn+
• Low cost/stable deposits
48% of total deposits
Agriculture Financing
Serves rural customer needs for agricultural inputs, storage facilities and
Mechanization. Provides short and medium term loans
• Disbursement exceeds US$0.2bn during peak season
• Dominant bank in this segment: 700+ rural branches
Islamic Banking
• Exclusive Islamic Banking branch network for both assets and liabilities.
Corporate Banking
Serves large corporate customers: multinationals, local private sector corporate and
state owned entities
Largest Corporate Banking in Pakistan
• Loan portfolio US$ 4.5 bn, market share corporate loans of 15% with
participation in more than 80% of all major transactions.
10 branches with over 500 customers
• Specializes in working capital, trade, structured project finance & government
commodity operations.
Investment Banking
Corporate M&A Advisory, Debt and Equity Capital Markets, Private Placements,
Leverage Finance and Privatization Advisory
• Established itself as a premier player in a short time
• Handled over 80% of all major transactions taking place in Pakistan.
Commercial Banking
Middle Market (customers with annual revenue of more than US$ 5 mn)
• Leading position in a competitive market with US$ 350 mn portfolio
18 branches, 1500 customers
Consumer Banking
Personal Loans, Auto Finance, Consumer Durables, Housing Finance and Balance
Transfer Facility
VISA Debit Card, Credit Card & CarToCar launched in 2005, 2007 & 2008 respectively.
Treasury
Money market, Forex and Primary dealer in government paper
New products launched: Derivatives (Interest Rate Swaps, FRAs, etc.)
Domestic Subsidiaries
• Asset Management
Launched Income, Stock Market and Multi Assets Funds.
• Habib Currency Exchange (Pvt.) Ltd.
Sale/purchase of foreign currency & remittances.
• First Habib Modaraba
Leasing business with annual growth of over 15%.
The HRM department plays an important role in value of any company. HBL has very
active and one of the best HR department in Pakistan as well as world wide. The structure
is as the President is assisted by ten Senior Executive Vice-Presidents and a staff of 29
Executive Vice Presidents, 154 Senior Vice Presidents, 420 Vice Presidents, 831
Assistant Vice Presidents, 2350 officers Grade-I, 4108 officers Grade-II, 3364 officers
Grade-III and 10658 Clerical/Non-Clerical employees. The total staffing as per 1999
balance sheet figures is 23022.
• Diversification strategy
• Geographic expansion strategy
Diversification Strategy: It implies that HBL will expand by adding new service
lines. With the passage of intervals HBL is used to introduce new banking services.
Geographic expansion strategy: It takes the company abroad. Acting upon this
strategy HBL has been expanded abroad. The abroad branches are mentioned above in
introduction section. HBL is planning to expand its business and branches in more
countries.
• Cost leadership
• Differentiation
• Focus
Cost leadership: HBL aim is to become low-cost leader in banking sectors that is why
HBL is providing effective services in low cost than other banks in Pakistan.
Focus: HBL provides banking services to its customer in that way that customer cannot
get that services from other competitors.
Functional Strategy:
HBL identifies basic courses of action that each department pursues in order to get basic
goals and objectives of HBL. Harmony of departments towards HBL’s single goal makes
it unique in the competitive market.
Job Analysis:
The procedure for determining the duties and skill requirements of a job and the kind of
person who should be hired for it is called Job analysis. Job analysis is every important as
job analysis information is used in Selecting and recruiting, compensation, performance
appraisal, training and in resolving other issues which HBL faces. HBL takes Job
analysis services from Sidat Hyder Morshed Association (SHMA) which is the biggest
HR consulting firm in Pakistan. The methods which are used in collecting job analysis
information are
• The interview
• Questionnaires
Questionnaires:
In questionnaire the employees solve the fill out questionnaires to describe their job-
related duties and responsibilities. The formats of questionnaires are either structured or
open ended.
A standardized method by which different jobs can be quantitatively rated, classified, and
compared.
Job description:
After getting job analysis information the next step is to describe job description which
contains the points of job identification, job summary, chain of command relationships),
responsibilities and duties, standard occupational classifications and standard of
performance and working conditions.
Job specifications:
After formulating job description the next step taken is job specification in which the
traits of employees are defined who are assumed suitable for the job.
The diagram below represents the process on which HBL’s selection is based. This gives
an overview to potential candidates as to the steps involved in becoming a part of the
HBL team.
HBL’s Entry-Level Programs are structured to ensure that you will quickly assume
responsibility for concrete tasks and important projects. Rotational assignments across
different business units provide a comprehensive and valuable experience in a relatively
short amount of time.
Experienced Level Program:
HBL recruits experienced professionals in all areas of the bank and encourage the
creation and pursuit of innovative ideas. HBL’s dynamic work environment offers
diverse opportunities to stimulate ongoing employee needs and supports career
enhancement opportunities. HBL encourages you to explore this section to find out about
current job openings and how to submit your resume.
Campus recruitment:
HBL is proud of its ability to nurture individuals and empower them to hone their
talents. HBL size gives itself the unique ability to provide fast growth and significant
responsibility early on in a career with multiple avenues to reach the top.
As part of HBL’s human resource strategy, HBL visits various universities across the
country to induct & groom fresh business graduates every year. Enthusiastic and talented
youth form the backbone of its banking operations and are nurtured to become future
leaders at HBL.
To attract the best young talent, HBL’s resource department employs a pro-active
strategy. HBL actively participates in campus seminars by giving presentations that
highlight HBL’s background, vision, mission, values, recruitment & selection process,
future career prospects and overall business strategies. HBL hires fresh talent on a
permanent basis and offer a wide range of career opportunities across all functions,
including Finance, Marketing, Operations, Information Technology and Human
Resources.
Rehiring Former employees:
It is an internal hiring source. Rehiring the former employees is the process in which
HBL rehires the former employees. But this process is practiced very rarely.
Final Selection:
After going trough all the processes the best candidates according to HBL’s selection
boards are selected.
Orientation:
Just after final selection and before starting of training process orientation is conducted
for selected employees in orientation new employees are provided with basic background
information about the HBL the basic contents of successful orientation are
o Information on employee benefits
o Personnel policies
o The daily routine
o Company organization and operations
o Safety measures and regulations
C-Technology contains
1. Knowledge of computer
2. Knowledge of internet & E-mail
D-Customer contains
1. Courtesy to Customer
2. Rapport with customer
3. Creative response to customer needs
4. Business sense (maximum revenue/ minimum cost)
E-Personal contains
1. Health & energy
2. Appearance
3. Integrity & loyalty
4. Grooming
5. Manner of speech
6. Attitude
7. Intelligence
8. Leave record
9. Attendance record
10. Punctuality
Each factor is marked tick against level of achievement and in the end total points scored
is written in the specific box. Also the signatures of appraisee and appraiser are taken.
FORM B3:
This form contains two big boxes. First box is about Development Plan/ Supervisor
comments. In this box supervisor gives comments about appraisee strengths and further
appraisee’s development needs (need to improve academic & professional qualification).
Second box is called overall assessment box. In this box appraiser gives the overall
performance grade to appraisee according to B2 form and the grade is given in form of
A, B, C, D. Then comments of appraisee is also taken in form of agree/disagree. Then
overall assessment is reviewed by reviewer and reviewer gives its comments too, but it is
not necessary. After it final acceptance of appraisee is also taken along with signatures.
5. Employee relation:
Employee Relations involves the body of work concerned with maintaining employer-
employee relationships that contribute to satisfactory productivity, motivation, and
morale. Essentially, Employee Relations is concerned with preventing and resolving
problems involving individuals which arise out of or affect work situations.
The environment at HBL is cultural, ethical and challenging that that encourages
creativity and commitment among employees. HBL fosters a work environment where
employees can realize their potential whether locally or in the international arena. Thus,
HBL enables its employees to achieve their professional goals while keeping in synch
with the bank’s overall objectives.
HBL believes in two skills for employee relation
Interpersonal communication
Conflict management
Interpersonal communication skill: At HBL the first skill for managers to understand
and practice is interpersonal communications, because it is the foundation for all actions
in the workplace and it allows the manager an opportunity to build relationships with the
overall workgroup without alienating anyone in the work environment. Working with
diverse groups of people requires a tremendous amount of interaction. If these
interactions are positive, they can help create the right workplace climate, attitudes,
beliefs and behaviors. Keeping in view these all points interpersonal HBL emphasizes on
strong interpersonal communication skill for effective accomplishment of goals.
Conflict management: In HBL the second skill for managers to leverage, is conflict
management. It is actually conflict resolving approach. Learning to leverage this skill
helps in resolving employee relations issues quickly and effectively, and creates greater
satisfaction with the workgroup. In this skill manager let his/her subordinates to speak
and say whatever they feel during working with manager. Manager cares employees
emotions and feelings.